Keep letting those banks do whatever they want? That sure worked out well, especially with our ex Fed chief pimping lousy loans the way he did before he slinked out of office and passed his mess to Bernanke.

TMFBent - that is not correct. If losses are only $4b to $8b, they will be absorbed by the FDIC, which is funded by member institutions. Only once 100 more banks have failed will the taxpayers have to bail out the FDIC. Currently the FDIC has $53b.

There were $1b in uninsured deposits at Indymac. It looks like some people did not follow my advice. They will get at least 50% of their money back immediately, but if they get any more they will have to wait for it.

So what's in store for these failed banks? Will they be forcibly dissolved? Absorbed by some other bank? Should we toss a benjamin at them when they hit $.10/share? Those who bought Bear Stearns at $2/share made out pretty good. Different situation, I know. So what's the most likely scenarios?